University fund scam: Puzzle of students paying for education loans they never received
Former Taita Taveta Governor John Mruttu. The Taita Taveta County Education Fund was established in 2013 by the former Governor to provide financial assistance to students from the county who wished to pursue higher education.
An unknown number of residents in Taita Taveta may have fallen victim to a County Education Fund scam after reports surfaced of former students being forced to repay loans that were never disbursed to them.
Some residents claim that money is being deducted from their salaries by the county government even though they never received loans from the revolving university fund.
From 2013 to 2016, some residents who attended various universities applied for education loans.
However, they are now facing the burden of repaying funds that were never actually disbursed by the loan scheme for their education fees while they were enrolled in university.
The Taita Taveta County Education Fund was established in 2013 by former Governor John Mruttu to provide financial assistance to students from the county who wished to pursue higher education. The fund was intended to support bright and deserving students who lacked the means to further their education.
The fund is administered by the Higher Education Loans Board (Helb) on behalf of the county government.
Since its inception, many students from the county have turned to the fund to finance part of their studies.
However, it has emerged that some students who applied for loans were approved by the board, but the funds never reached their intended recipients.
One of the victims, Rachel Nose, said she applied for the loan in 2016 when she enrolled at Kenyatta University for her undergraduate degree in teaching, but did not receive a response from the county government.
Believing that she had failed to secure the loan, Ms Nose funded her entire university education herself, unaware that the money had been disbursed, but to another university.
To her utter shock and dismay, she discovered in July this year that a Sh4,000 loan repayment had been deducted from her salary.
"The pay slip shows that it's a university loan recovery and when I checked the Helb portal, it showed that Taita Taveta County was the one making the recovery. I called Helb and informed them that I had applied for the loan but it never materialised," she said.
She also noticed the discrepancy between what she owed according to her pay slip and what Helb said she owed.
Her payslip showed that she had a university loan of Sh49,000, while Helb said it was Sh50,000.
On further investigation, she found that the money had been sent to Daystar University, but the institution has denied receiving any money from the county government.
"Daystar told me that the student the county claimed to have received the money is not from my county and the money was not transferred to him as claimed," he said.
Ms Nose said she had also contacted the county government to rectify the situation, but her pleas had fallen on deaf ears.
She said the inability of the county government to address the issue has led to a lot of frustration and anger among the affected residents.
They are now demanding that the county government reimburse them for the money deducted from their salaries.
"I am now burdened with the weight of repaying a debt that I did not benefit from. I need to be relieved of this unfair burden," she said.
She has called on the Ethics and Anti-Corruption Commission (EACC) to investigate the matter and take action against anyone found to have been involved in the scam.
"We also hope that the county government will take steps to ensure that we are reimbursed. The relevant government agencies should ensure that they bring those responsible to book," she said.
Another resident who was a student at Kenyatta University, Lucas Kamu, tells a similar story.
Mr Kamu, who is now a teacher at St Mary's Boys Lushangonyi, said he applied for the student loan in December 2013 but was told he qualified for Sh30,000, which was never transferred to him.
"In July 2015, I received an email from the county education fund telling me that my loan had been approved. They wanted me to fill in some documents before they would pay the money. But since I was in my final year and my sister had settled my education fees, I did not follow up," he said.
He said he received a notice from Helb last year reminding him to pay his loan, and when he visited their offices he was informed that he owed the county government Sh45,000 which he had received to finance his university education.
He said a Helb official advised him to settle the matter with the county government so that his name could be removed from the list.
"I visited the loan offices in July and December, but to my shock, they deducted Sh4,181 from me in March this year. It shows that the money was paid to the University of Nairobi and I was never there," he said.
Mr Kamu says the deductions have left him with an extra financial burden that he had no intention of paying.
"I have been working hard to support my family and suddenly part of my salary is being deducted for a loan I never received. It's an injustice that affects many of us, and we demand answers from the county government," he said.
The latest revelations point to a potential misuse of funds and raise questions about transparency and accountability within the system.
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The County Education Loans Board has been accused in the past of lacking proper oversight and accountability.
In previous administrations, the board has been accused of corruption, leaving deserving students without the financial support the fund was intended to provide.
But the more than 10 residents who claim to be victims of the scam say more people are yet to come out to air their cries.
County officials have yet to respond to the claims, leaving the victims desperate for answers.
"We want the truth to come out and we want justice. They said they cannot help us," said Ms Dorothy Mwasawa, who had Sh36,000 deducted from her account instead of the Sh25,000 sent to Taita Taveta University.
She said her efforts to get a refund of the Sh9,000 she paid had been in vain.
The fund's CEO, Lawrence Mwakio, said they would respond in due course.
"I cannot say now but we will make a statement very soon," he said.
Daniel Kimuyu, the deputy chairperson of the county assembly's education committee, said the allegations should be investigated and those found guilty of defrauding public funds or mismanaging the education kitty should face legal consequences.
"We have received the complaints and we will discuss the matter when we resume sessions," he said.
